Deposits From Undeposited Funds 7160 Excel Accounting Problem 2021

QuickBooks Pro Plus desktop 2022 deposits from undeposited funds, I get ready because we bookkeeping pros are moving up the hill top with QuickBooks Pro Plus desktop 2022. Here we are in our get great guitars practice file going through the setup process with a view drop down the open windows list on the left hand side go into the company drop down home page in the middle, maximize on that homepage to the gray area. Go into the reports drop down company and financial take a look at that balance sheet standard report customized in the report with the range changed from a 101 to two to 1231 to two fonts and the numbers change in that font size up to 14. Okay, yes, please.


And okay, let’s go to the reports drop down company and financial look at the profit and loss P and L rains change a 101 to two to 1231 two to customize in that report for the fonts and the numbers change in that font up onto 14. Okay. Yes, please. And Okay, one more time reports drop down this time with the accounting and taxes TB Trial Balance, range change from Oh 101 to two to 1231 to two, customizing that report fonts and the numbers change that font up to 14. Okay, yes, please. And okay.



So now what we have done, if we go back to the home page, we’ve been creating invoices and then receiving the payments on them, we then have the sales receipts that we have created those being the ones that are inside the store, we can imagine kind of a cash register at that point. And now we have this number five next to the deposit item indicating items that are in undeposited funds created or increasing undeposited funds through the entering of the received payments and the sales receipts, we can verify that by going into the balance sheet.



For example, looking here in undeposited funds, we got that 28,070 85 in it, noting that should represent some form of money that we have either in our hands in the form of cash checks or possibly credit card payments that have not yet been indicated into our checking account that we’re trying to group in some way to go into our checking account in the same format as they will be seen on the bank statement making the reconciliation process easier to do.



So what we want to do now is move it from undeposited funds to the deposited area, not just simply by putting whatever’s in there in the to the deposited area. But by grouping them in such a way so that we can tie out in the bank reconciliation as easily as possible. So if I go back to the home area here, we can go to the deposit. And this, by the way, is why this deposit form, it’s quite useful. If you were making a deposit that did not have a link to something like it wasn’t decreasing undeposited funds, it was not created from receive payment, or the sales receipt, then you might just go directly into the check register.



And that would be fairly easy to enter it as we might do. Like when we first entered the transactions that we put in for our investment in into the company and or for the loan. But here we want to link it out. So I’m going to click on this item that five, those five items will then pop up, we can see the five items that have been populated from the other transactions that we have been making. And I’m going to check off just two of them for now imagine that we are going to the bank, we’re going to deposit these two into the bank for a total deposits of we’re gonna say 7005 70.85.



Or you can imagine whatever your credit card company is doing, how they deposit the transactions into your checking account and think of it as a similar system in that way as well. So again, you can match out your deposits to what’s going to appear on the bank statement. That’s the idea. We’ll do it in two groups here. So I’m going to say at least two groups, we’re going to say, okay, so there it populates in, we’re gonna let’s adjust the date to the to the 20th. And tab through this. Now note, it puts the other side to undeposited funds. So clearly it’s a deposit increase in the checking account, that’s usually going to be the default. And then it’s going to be on this date.



The other side is going to the account of undeposited funds, which has already been populated due to us checking them off in that little pop up window. So that means we’re gonna have a total down here of 7005 7005 7085. That’s what’s going to go into our checking account. That’s what will also appear when we reconcile our checking accounts to the bank statement, hopefully making it easy so we could just take and tie off this one single number to what’s on the bank statement, even though it was created from these two kinds of transactions. In this case that we’re kind of putting it into the bank at the same point in time, let’s save it and close it and check it out.



So we’re going to say save it, close it. And let’s go to the trial balance to check it out. In the checking account, let’s check out the check in double clicking on it, we got that deposit, there it is. And notice it’s in there for that single deposit 7005 7085, which we expect to see in the bank statement to check it off there. there that is closing that out. And again, closing it, let’s go to the other side, which was in undeposited funds, there’s undeposited funds double clicking on it, then we see it coming out of undeposited funds in the two transactions, separating them out both of them happening on 120, both of them on the same deposit form.



If I double click on it, you can see those two items here. So closing that back out, closing this back out, they’re both balance sheet items, no impact on the income statement, or profit and loss, even though we’d receive cash, because we already recorded the income at the point in time we earned it. In this case, it was you know, when we recorded the invoice and the sales receipts, so that was fun. Let’s do it again.



Do it again. That was great. So let’s do it. Again, we’ll go to the homepage again. And now we’ve got three left, three left, that we’re going to imagine we’re going to deposit those at the same time. So I’m going to go back in there for those last three, click on those items. And then we got the pop up window that pops up, they say hey, look, you got these three items in undeposited funds. I’m paraphrasing, this is what this is QuickBooks talking to me, Hey, look, we got these three items that came that were in undeposited funds.



Are you depositing those together? Why don’t you check these off in the same order that you’re going to deposit them in. So we’ll check them all off, checking them all off, adding up to the 20,005. Imagining, that’s what’s going to go into the checking account in some way shape, or form either by us walking the money over there, or by the credit card possibly, that’s what we think they’re going to group the deposit into our account for. So I’m going to say okay, that’s what we want, let’s then say it’s going to go into the checking account, let’s put this on the 21st, changing the date for these three items that automatically posts the other side to the undeposited funds.



And we got these three separate amounts, adding up to the 20,500 transaction related to this will be an increase to the checking account decrease to the undeposited funds, bringing in undeposited funds, I believe at this point down to zero once again. So let’s save it and close it.



And check it out. Save it, close it, check it out, let’s go to the trustee TB trial balance. And notice undeposited funds is still there on the trial balance, even though at zero, which is that’s kind of a default setting on undeposited funds, which is nice on the trial balance I mean, because then it allows you to say there was activity in this account, even though it goes down to zero, the undeposited funds being what I would call a clearing account, which is different than a temporary account.



The temporary accounts being the income statement accounts down here that we see that will close out periodically to the equity section. Clearing accounts are even more temporary in nature, in that they’re just going to be there to hold on to something and then they’re going to clear back out to zero generally, in this case, they’re there to hold on to something until we grouped that information into the grouping that we want before putting it into the account that it’s ultimately going to go to that being the checking account.



So if I double click on it, you can see what should happen in this account, it should go it should basically go up and then go back down. And because it records these transactions separately like this, it allows us to take and tie off what is actually happening quite easily. There’s the 5000, there’s the 5000, and so on, even though we deposited them at one time.



So if I double click on this, for example, this, these three transactions add up to that one deposit of 20,500 closing this out that allows us to tick and tie off these items up top. If I go into the checking account, closing this back out into the checking account, it records the deposit there in one lump sum amount, which is good for the checking account, because that lump sum is what we want to tie out when we do the bank reconciliation to the bank statement. And the bank knows what we got deposited by just what we put in in terms of a lump sum. So that’s going to be the general idea there’s going to be no impact to the income statement.



Again, we’re just taking it out of in essence, one a cash account and putting it into the other cash account. If we go to the balance sheet. You can see the same kind of thing here. But notice undeposited funds has disappeared. That’s why the trial balance is kind of useful to us. But if you’d like go into the reports, instead of the trial balance, you could go to the customized reports up top and say that you would like to go to the advanced settings. And I’d like to see display rows I want to see the active rows.



That means I’m going to you want to see the zero rows that have zero balances if there was activity in it. The date range that you’re choosing, so I’m going to say show me those active rows. And then Okay, and so now we see the undeposited funds there again, so in your internal reporting, when you’re using the balance sheet for internal usage to check your transactions, you probably want to see the zeros that are active, maybe even all of your accounts, you can change it to all accounts, but the active ones possibly,



I mean, for sure, most likely would be useful. And then when you’re doing the external reports, the ones that you’re going to get to the client, then you want to remove the zeros because the zeros are of no value for reporting purposes for external reporting.

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